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MTECHTIPS:-Crude surges for the second straight session, ahead of weekly API data Crude futures surged on Tuesday extending gains from one session earlier in spite of a stronger dollar, ahead of weekly API supply data after the market’s close. On the New York Mercantile Exchange, WTI crude for August delivery gained 0.68 or 1.13% to 61.05 a barrel, rallying more than 1% for the second consecutive session. Texas Long Sweet futures traded in a wide range of 59.58 to 61.20, spiking nearly $2 a barrel from near-session lows in U.S. morning trading. On the Intercontinental Exchange (ICE), brent crude for August delivery shot up more than 2.25% to an intraday high of 64.89, its highest one-day move in two weeks, before falling back to $64.50 a barrel, up 1.16 on the session. The surge pushed brent futures to its highest closing level since June 12. Meanwhile, the spread between the international and U.S. benchmarks of crude rose to 3.45, above Monday’s level of $2.96 at the close of trading. U.S. crude inventories are expected to continue its steady decline when the American Petroleum Institute releases its weekly inventory report on Tuesday afternoon. Separately, a report from the U.S. Energy Information Administration (EIA) on Wednesday could show that U.S. crude stockpiles fell by 1.8 million barrels for the week ending June 19. Last week, U.S. crude inventories declined by 2.7 million to 467.9 million marking the seventh consecutive week of weekly draws. Crude stockpiles throughout the U.S. have fallen sharply over the last two months, as the summer driving season ramps up. The EIA said in its last report that U.S. refinery operated at 93.1% of its total capacity, a figure that may have declined over the last several days due to the effects of Tropical Depression Bill in the Gulf Coast region. While slowing production and increased gasoline demand has helped reduce a historic glut of oversupply in recent weeks, U.S. crude inventories are still at their highest level at this time of the year in at least 80 years. The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, soared to an intraday high of 95.88 experiencing its highest one-day move in more than three weeks, before falling back slightly to 95.68, up 1.23%. Dollar-denominated commodities such as crude oil become more expensive for foreign purchasers when the dollar appreciates. WWW.MTECHTIPS.COM 07489294118-119
Wednesday, June 24, 2015 0:50
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